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Technical Outlook

Equity benchmarks snapped past two weeks winning streak and settled below psychological mark of 15000 amid subdued global cues. The Nifty ended the week at 14982, down 1.2%. In the coming session, Nifty future is likely to open on a flat note tracking mixed global cues. We expect index to extend the ongoing breather amid stock specific as intraday pullback would remain short lived. Hence, use intraday pullback towards 15045-15068 to create short position for target of 14956.

Going ahead, we expect the index to extend the ongoing healthy retracement towards strong support of 14600 in coming weeks. Key point to highlight since May 2020 is that, the intermediate correction has not lasted for more than a week. We believe, ongoing breather would help stochastic oscillator to cool off the overbought condition further and undergo a base formation at key support threshold of 14600. Hence, buy on dips in quality large cap would be the prudent strategy to adopt. Meanwhile, upside will be capped at 15300

Nifty Daily Chart

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